Investing Tips in a Volatile Market

Hello all! I want to introduce myself to you! My name is Eric Bitetto. I am the founder of Semper Fortis Financial, LLC, and a financial advisor.

We have been in the business of meeting our client’s wealth management and overall financial needs for a decade. We have been a part of the Myrtle Beach, SC community for three years, and I am originally from Queens, NY. We are thrilled to be a part of this community and are excited to see what the future brings. 

Speaking of the future, that can be a touchy subject currently when we consider the economy and the financial markets. After experiencing an approximate decade of positive financial markets, the last 18 months have brought significant market volatility and market declines. In addition, we have witnessed inflation not seen in 40 years and corresponding rises in interest rates, interruption in global supply chains that have produced shortages of goods and materials, and geopolitical events that have all played a role in the market and economic tumult. This occurred while the world attempted to recover from a global pandemic and an economy that was shut down just three short years ago.

We know these events have caused some people a lot of fear and uncertainty regarding managing their money. Do they invest or stay invested? What is the best strategy? While there is no one correct answer, as every person is different and every financial situation is unique, we wanted to share three best practices you can implement regardless of your position to help guide you when investing your money. 

Investing in a volatile market can be challenging. Still, you can improve your chances of maximizing returns and minimizing risks with the right strategy. Here are three tips to consider when investing in a volatile market: 

1. Diversify your portfolio: Diversification is a crucial strategy to mitigate risks in a volatile market. Investing in various assets, such as stocks, bonds, and commodities, allows you to spread your risks across different sectors and minimize your exposure to any particular asset class. We also are a proponent of maintaining adequate cash holdings for liquidity purposes, cash alternatives, and tangible assets such as real estate for a healthy balance. A well-diversified portfolio can help you weather the ups and downs of a volatile market.
2. Have a long-term perspective: In a volatile market, it’s essential to have a long-term view and avoid making knee-jerk reactions based on short-term fluctuations. Do not be an emotional investor! Instead, stay focused on your investment goals, and remember that market volatility is often temporary. By maintaining a long-term perspective, you can ride out market turbulence and benefit from the potential growth opportunities that arise over time.
3. Pay attention to market trends and news: While having a long-term perspective is essential, staying informed about market trends and information that may affect your investments is also a good practice. Keep an eye on economic indicators, such as interest rates and inflation, as well as political and geopolitical events that may impact the markets. Staying informed can help you make informed decisions about your investments and adjust your portfolio as needed to take advantage of potential opportunities or mitigate risks. 

Overall, staying disciplined in your investment strategy and abstaining from the temptation to make emotional decisions with your money and your portfolio is important. Studies show that time in the market is better than trying to time the market. So, keep the focus on your investment goals.

We always encourage our clients and friends to contact us with their questions and concerns so we can discuss them and review how current markets are affecting them and their financial health.

Please feel free to reach out if you have questions or concerns. We are here to help!